T-Systems pay offer 'not acceptable' - labour union

1 Min Read

FILE PHOTO: A Deutsche Telekom logo is seen at the Mobile World Congress in Barcelona, Spain, February 26, 2018. REUTERS/Yves Herman

FRANKFURT (Reuters) - A pay offer made by T-Systems, Deutsche Telekom’s (DTEGn.DE) IT services arm, is not acceptable, the Verdi services union negotiating on behalf of 11,000 workers said on Friday after a fourth round of wage talks.

The offer from T-Systems foresees a 1.6 percent raise on April 1 of next year and would extend a pledge to refrain from compulsory redundancies by two years.

“Twelve empty months and a small percentage increase in 2019 would mean a massive loss of incomes in real terms,” Verdi pay negotiator Michael Jaekel said in a statement. The union demands a 5.5 percent raise.

T-Systems’ CEO Adel Al-Saleh, in charge since the start of the year, wants to cut 10,000 jobs in a push to return the unit to profitability, but has yet to win the support of labour leaders for his turnaround strategy.